BILL NUMBER: SB 381	CHAPTERED  09/06/05

	CHAPTER  173
	FILED WITH SECRETARY OF STATE  SEPTEMBER 6, 2005
	APPROVED BY GOVERNOR  SEPTEMBER 6, 2005
	PASSED THE ASSEMBLY  AUGUST 18, 2005
	PASSED THE SENATE  MAY 9, 2005
	AMENDED IN SENATE  MAY 3, 2005
	AMENDED IN SENATE  APRIL 12, 2005

INTRODUCED BY   Senators Denham and Scott

                        FEBRUARY 17, 2005

   An act to amend Sections 11521.3 and 11521.6 of the Insurance
Code, relating to annuities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 381, Denham  Charitable annuities: exemptions.
   Existing law allows certain organizations and persons, known as
grants and annuities societies, to receive transfers of property,
conditioned upon their agreement to pay an annuity to the transferor,
after obtaining a certificate of authority from the Insurance
Commissioner. Existing law exempts a grants and annuities society
from specified regulatory requirements if it also holds a certificate
of authority as an insurer from the commissioner.
   This bill would add regulatory provisions relating to the
maintenance of reserves, annuity agreement terms, the transaction of
variable annuities, and the filing of a specified financial statement
to the provisions from which a grants and annuities society is
exempt if it also holds a certificate of authority as an insurer.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11521.3 of the Insurance Code is amended to
read:
   11521.3.  (a) Prior to admission each applicant shall file with
the commissioner an accurate and complete financial statement
consisting of a balance sheet and income and expense statement,
showing the current condition of the applicant and sworn to by the
officer of the applicant having the responsibility for preparing the
statement.
   (b) If the applicant is already transacting a grants and annuities
business in another state, an accurate and complete financial
statement showing the condition of the present grants and annuities
business, sworn to by the officer having the responsibility for
preparing the statement, shall be submitted.
   (c) One hundred and twenty days after the end of their fiscal
year, every certificate holder, except a certificate holder that also
holds a certificate of authority pursuant to Article 3 (commencing
with Section 699) of Chapter 1 of Part 2 of Division 1, shall make
and file with the commissioner an accurate and complete financial
statement, consisting of a balance sheet and income and expense
statement, showing the current condition of the certificate holder's
grants and annuities operation on a form prescribed by the
commissioner.
  SEC. 2.  Section 11521.6 of the Insurance Code is amended to read:

   11521.6.  Nothing contained in Section 11521, 11521.1, 11521.2,
11521.4, 11523.6, or subdivision (e) of Section 11523 shall apply to
any grants and annuities certificate holder that also holds a
certificate of authority pursuant to Article 3 (commencing with
Section 699) of Chapter 1 of Part 2 of Division 1.